Questions & Answers

Should I take the military credit or the military subtraction?

If your adjusted gross income is $37,500 or more, the subtraction will provide a greater benefit. If your federal taxable income (federal Form 1040, line 11b) is less than your subtraction or if your subtraction is $14,018 or more, the subtraction will generally provide an equal or greater benefit. You can also try each one independently to see which one will be most beneficial.